1st batch of LNG pipes arrives

Somare: Gas project making steady progress

THE first shipment of the LNG pipes was offloaded recently at the Gulf of Papua without much drawing much attention, The National reports.
The 850km onshore and offshore pipeline will transport gas from Southern Highlands and Western provinces to the two LNG train facility near Port Moresby where it will be processed.
From there, it will be shipped to major customers in China, Japan and Taiwan.
Shipments are scheduled to begin in 2014.
State Enterprises Minister Arthur Somare said he was pleased that the landmark PNG LNG project had been making steady progress since the final investment decision was taken last December with substantial work being undertaken throughout the LNG project footprint area.
“Whilst there was no formal welcome, the arrival of the first shipment of pipe is nonetheless an important occasion in the development and progress of the project,” Esso Highlands Ltd managing director Peter Graham said.
He said the construction phase and ongoing operations would have a multiplier effect on the PNG economy.
“Even though we are in the early stages of project execution, the country is experiencing the benefit of our investment.
“Through our contractors, we are employing 3,000 PNG citizens in this early activity, which represents nearly 90% of our total current workforce,” he said.
Graham said the project was working closely with local landowner companies to promote direct involvement in project construction.
“In the second quarter of this year, the project invested more than US$170 million (K420 million) with local companies for construction goods and services.”
Graham said the co-operation of communities and the government is necessary for the project’s success.
“The project continues to work to enhance community engagement with the goal of fostering understanding and co-operation on key interests.”

Unknown future awaits

As Papua New Guinea’s schools put out more leavers, spaces at higher institutions will run short, prompting the need for more tertiary and skills training institutions. 

This was the message highlighted to Kilakila Secondary School Grade 12 students who graduated last Friday. 

While some will continue their education in the formal system, others will be left to make it out on their own through the vocational and other life-skills training institutions or through extended studies programmes. – Nationalpic by EKAR KEAPU

Prime Minister backs medium-term plan

THE prime minister said next year’s budget, to be brought down in parliament next week, will represent the start of the medium-term development plan for the first five years to 2015, The National reports.
He said under the MTDP, the government was targeting a development expenditure of K36 billion over five years to create an additional 315,200 jobs throughout Papua New Guinea by 2015.
Sir Michael said the MTDP was also the first five-year stage in the government’s broader strategy of the 20-year development strategy plan (PNGDSP) and the realisation of the Vision 2050 programmes, which would provide the overall direction of PNG’s development initiatives for the next 40 years.
“These programmes collectively form the building blocks for economic development and prosperity of our nation for future generations,” Sir Michael said in a statement yesterday.
The plan would aim to achieve an average economic growth of 8.5% a year which would result in a healthy rise in the average GDP per person from K3, 430 this year to K4, 638 by 2015, he added.
“The MTDP now becomes the cornerstone for all national, sectoral, provincial, district and local government plans.
“It provides cohesion, direction, rigour, deliverable targets, measurability and accountability for all sector development activities.
“Above all, it is a programme that enables the whole nation to pull together in a team effort to realise Vision 2050.”
The most significant aspects of the MTDP included:

Ø       The upgrading of 16 national priority roads, construction of 16 “missing link” roads and construction of four additional economic corridor national roads;

Ø       The construction of 315 new aid posts around the country in line with targets set for 2030 under the DSP. The plan required the Department of Health to hire 50 additional doctors and 787 nurses by 2015;

Ø       In the education sector, 1,678 new primary and secondary schools would be built across the nation in every province with more than 9,800 teachers to be recruited in the next five years;
. In higher education, about 21,500 university places would be created, 6,800 technical and business college places, 8,000 teacher places, 5,000 nursing places, 3,700 vocational training institution places and improved access to internet and communication technologies; and

Ø       K1.1 billion will be spent to improve the law and order situation.
Job creation within the MTDP was expected to be dramatic with 87,300 jobs created by the end of next year and 315,200 more Papua New Guineans to have jobs by 2015.
About 239,000 of these government and private sector jobs would be in the “urban formal” sector with most of the balance representing additional rural employment at the “informal level” in a village environment, Sir Michael said.

Baki faces sacking

POLICE Commissioner Gari Baki faces being sacked before his term expires next January, The National reports.
Prime Minister Sir Michael Somare issued instructions to replace Baki soon after he removed Police Minister Sani Rambi from the portfolio to Labour and Industrial Relations.
According to documents made available to The National, Baki faces the sack for “misleading” cabinet in requesting K10 million for police operations in the PNG LNG project areas.
The documents showed that Sir Michael had written a letter to Public Service Minister Peter O’Neill to begin the process of suspending and removing Baki, and appointing deputy police commissioner Tony Wagambie as acting commissioner and Supt Fred Yakasa as deputy commissioner.
The reasons cited in the letter accused Baki of allowing the police force to run down and “there is a general breakdown in law and order”.
A separate letter, purportedly from the prime minister to Baki last Thursday, asked the commissioner to respond to the allegation that he had misled the prime minister and other senior government ministers into thinking that K10 million was urgently needed to ensure continued police presence in Kopi and the LNG corridor and that he had already withdrawn officers from the area.
Sir Michael stated that the decision to withdraw officers was in direct conflict with the advice he had provided and called into question whether Baki had adequately performed his duties as commissioner.
He stated that this was against advice provided by Peter Graham of ExxonMobil that the developer was providing all necessary support to police in the area which included transport, communication, fuel and additional allowances for police.
ExxonMobil stated that the government only needed to provide base salary, uniforms, weapons and ammunition.
“At this stage, it appears as though you have deliberately misled the government and I believe that these serious allegations amount to misconduct and wish to advise you that you have three days to respond to the allegations.
“Failing this, I will institute necessary disciplinary action in accordance with your contract,” Sir Michael stated.
It was unclear if Baki had responded to the letter from the prime minister.
But, police sources said Baki was well within his rights to ask the government for urgent funding because the work of police was a state responsibility, to be funded by the government, and the constabulary cannot be getting paid by contractors and be seen as private security guards.
“If the government is serious about the security of the PNG LNG project, and wants the constabulary involved in security operations, it must find the money to fund it.
“Receiving K2 million funding from ExxonMobil every month will make police look like the company’s security guards,” the source said.

 

Defence changes in the next decade

BY REGINALD RENAGI

A BETTER BALANCED approach to decision-making within the Papua New Guinea defence organisation requires processes to encourage consultation and reconcile diverse views in a timely manner leading to clearer decisions and better accountability.

Defence has had too many committees with the same senior-ranked members.

Over the past two years, these committees have been reduced to less than six.

But they still need to improve their assertiveness to manage many outstanding issues built up over previous years.

The future PNGDF must give high priority to sovereign defence tasks.

More of the Ministry’s attention and resources will need to focus on urgent internal security challenges and national development initiatives like civic action tasks.

To perform its future roles effectively, defence operations will have to be more responsive.

This means developing highly-mobile special operations forces that can react more quickly to internal security contingencies.

More attention must focus on readiness and sustainability than on buying expensive equipment.

The future PNGDF must be a better organised and well-equipped force.

It should be innovative and flexible and share support functions with the civil police force.

The Defence secretary and Force commander must be responsible for implementation of a force restructure and the subsequent reorganisation described in Part I of this series (see post below).

A small force restructure implementation team should be established this year.

Ongoing evaluation must be done to monitor achievement of resource efficiencies.

The management of change will be undertaken by line managers so that process and outcomes are owned by the personnel and organisations involved in the activity.

Responsibility for creating new sub-organisations should belong to the programme manager who will be responsible for the arrangements proposed by the review.

The PNGDF is currently not structured to adequately fulfill its present roles, particularly in internal security, while at the same time engaged in nation building tasks.

A previous Cabinet decision to raise the manpower ceiling to 5,200 by 1995 did not materialise, demonstrating the then government’s lack of political will.

The present security situation demands that the government must rescind the decision in late 2001 to cut the PNGDF’s strength by over 60%.

 It must commit to boosting the military’s size to over 10,000 and to increase the size of the police force.

The restructuring must be conducted in phases to permit the initial reorganisation to take place at minimum cost.

The government needs to make a continuous and stable investment for a decade to properly reshape the department and the PNGDF.

There is no other option but to improve the efficiency and effectiveness of defence within the next decade.

The writer is confident that an appropriate level of defence funding for national security can be achieved.

Defence needs appropriate financial resources to execute a restructuring plan.

A defence re-organisation is required in Papua New Guinea

BY REGINALD RENAGI

OVER THE NEXT few years to the end of the decade, Papua New Guinea’s defence organisation needs to undergo some far-reaching changes.

As part of the government’s long-term Defence Reform Plan, the Ministry of Defence must continually improve its functions by systematically implementing rationalisation at the higher defence level.

In recent times, a separate training branch has been established within the Murray Barracks defence headquarters in Port Moresby.

The Ministry will need to co-locate public affairs, legal services and an integrated logistics component.

An urgent need also exists for a defence reserve force structure to include lower level operations headquarters under existing command arrangements.

The strategic and operational headquarters must also be refined and reshaped.

Unlike in previous years, the new Defence Force headquarters must work well with the Defence Department.

After this, operational units must be further reviewed in some depth to streamline their structures and operational roles.

These proposals will involve changes to the PNGDF’s current organisation, preferably over the next 12 months to two years to make it more effective and efficient.

Once provisional arrangements have been trialled and established, the Ministry should start boosting the overall strength of the Force to meet PNG’s future security requirements.

In addition, the Ministry must be more creative in the use of civil contractors to efficiently maintain its capital assets such as ships, aircraft, heavy vehicles and associated equipment.

In the next two years, before the next national general elections, the PNG government through the Ministry must fully commit to initiate changes designed to deliver defence cost savings while substantially increasing the country’s total military effectiveness.

The Ministry’s continuing challenge is to keep the Defence organisation focused on key outcomes in ways that conform to broader government practices and requirements.

There also needs to be greater centralisation of policy and planning functions, including capability development arrangements.

The Defence secretary and the Force commander must be unambiguously in charge of the Defence organisation.

There needs to be a clear definition of functions solely the responsibility of the secretary, solely those of the Commander, and those which are shared.

A Chiefs of Staff Committee and a senior Defence Management Committee should also be created to provide high level policy and management guidance to the organisation.

The ways in which the military branch and civilian division heads exercise their responsibilities must be considerably changed.

In short, defence executives from both civil and military must know where their organisation wants to go, and what resources it has to get there.

Wantoat farmers need access to Lae fish markets

By SUZIE GEBO of NARI

Despite the mountainous geography of the area, smallholder farmers in the Wantoat local level government of Markham in Morobe have successfully constructed fish ponds and are producing fish of exceptional sizes.

A fish pond at Wantoat

 The environment is ideal for inland pond fish farming.

Currently there are about 30 established fish farmers and the interest in fish farming is growing and more people are starting to engage in this activity.

The pond sizes range from as small as 5m x 5m to as large as 11m x 45m and are stocked with carp and GIFT (genetically improved farmed tilapia) that number from a few hundred to over 2,000.   

Recently, inland aquaculture researchers of National Agriculture Research Institute’s (NARI) livestock project from Labu near Lae visited Wantoat, a remote part of the Markham district, upon request by smallholder fish farmers in the area. 

Wantoat fish farmers and NARI researcher Suzie Gebo (right)

 The visit was organised as part of a NARI smallholder livestock development project, funded under the public investment programme (PIP) of the national government.

 It was a consultative visit to gather information on the status of inland aquaculture activities in the area.

The meeting with the fish farmers explored needs for technical assistance in relation to this activity.

There was interest in fish farming but there was lack of skills and technical know-how in raising fish in ponds.

An important issue pointed out by fish farmers was the absence of quality fish feed.

Feeding low value feed and the high cost of developing quality feed is hindering the progress of this activity.

There are a lot of good feed ingredients available but major components of a basic fish diet like fish meal, millrun and copra meal, were not readily available.

These ingredients are needed to produce quality fish feed. 

Another major constraint faced by the fish farmers is the lack of access to markets for their fish. They are producing large numbers of fish which can be sold to supermarkets or restaurants within Lae city.

However, that is not happening, thus resulting in huge surpluses of fish.

There is a great need for a market network to be set up for these fish farmers.

NARI researchers in collaboration with needy smallholder farmers plan to organise a group of fish marketing trials to try to establish a market link between fish farmers in the villages and the markets in Lae.

With the support of local government services, major constraints of smallholder fish farmers in remote places like Wantoat can be overcome.

Such issues faced by fish farmers in Wantoat and other remote areas, should be taken on board by extension service providers, researchers, development practitioners and policy makers alike, to look into developing appropriate strategies that can enable them to have easy access to major feed ingredients for quality fish feed, as well as an established market network for sale of fish. By creating an enabling environment for fish farmers, their efforts can be well rewarded and they will be motivated to do more thus helping to boost the local economy.